Establishing Prepaid Amounts

This chapter provides an overview of prepaid amounts and discusses how to:

Establish prepaid amounts.
Define and view utilization of prepaid amounts.
Monitor administrative activity for prepaid amounts.

Understanding Prepaid Amounts

Customers can prepay for rate-based goods and services. The prepaid amount may be applied to one or more rate-based contract lines. In addition, the amount may be used against all or a portion of the billing activity for the applicable contract lines.

Note. You cannot have prepaid amounts on internal contracts.

This section discusses:

Prepaid balance types.
Prepaid statuses.
Prepaid amounts: billing and utilization.
Prepaid accounting.
Prepaid balance processing.
Prepaid amounts: tracking.
Example of a prepaid.

Prerequisite

Before you can set up prepaid amounts for a contract, you must have first set up a contract.

Prepaid Balance Types

Prepaid balance types are:

Inclusive

Prepaid amount that is included in the negotiated amount of other goods or services. Inclusive prepaids are deducted from the amount to allocate on the Negotiated Amount Allocation page. You may bill for an inclusive prepaid amount by using a billing plan that combines the billing for the inclusive prepaid amount with the billing for those goods or services with which this prepaid amount is included.

For example, you sell a software license for 500,000.00 USD, and included in that license price is 50,000.00 USD for your consulting group to install the software.

Non-Inclusive

Noninclusive prepaid amounts are not reflected in the negotiated amounts of your amount-based contract products. You can combine a noninclusive prepaid with a billing plan that also has amount-based contract lines.

For example, you offer customers a more favorable service rate if they prepay for 100,000.00 USD of consulting services.

Prepaid Statuses

Prepaid status values are:

Pending	When first creating a prepaid amount, Pending appears by default as the status. All fields on a pending prepaid amount are fully editable. No processing occurs against pending prepaids, so they are not subject to system edit checking. You can delete a pending prepaid.
Ready	Manually update the status of a prepaid to Ready after you have captured all information associated with the prepaid and assigned it to a billing plan. After you update a status to Ready, the system performs edit checks, the majority of fields become unavailable, and the prepaid is eligible for initial billing and utilization. Note. Inclusive prepaids are included in the negotiated amount allocation once they have a status of Ready. You cannot mark allocation complete for the contract unless all inclusive prepaids have a Ready status.
Completed	Upon depletion of the prepaid balance, update the status to Completed. Once complete, you cannot update the status. You must change billing and utilization directly in Billing.
Cancelled	Prepaids may be cancelled from any status value. You can manually change the status of a prepaid to cancelled, provided that the following are true: The remaining prepaid balance equals the original prepaid balance. This implies that no utilization has been finalized in Billing. The committed prepaid balance equals zero. This implies that no utilization exists in a pending bill in Billing. The billing cross-reference history for the initial billing plan nets to zero or has a status of deleted. This implies that the initial bill was either credited or cancelled in Billing. Once cancelled, a prepaid cannot be reopened.

This table shows the relationship between billing plan status and prepaid status:

Billing Plan Status	Prepaid Status
Pending	You can change prepaid status to any status except Completed. If you no longer want the prepaid, set it to a status of Cancelled.
Ready	You can change prepaid status to Cancelled only.
In Progress	Prepaid status is Ready and cannot be changed.
Action Required	Prepaid status is Ready and cannot be changed.
Cancelled	You can set prepaid status to Cancelled. However, if utilization has occurred, all amounts must first be “backed out.”
Completed	You can set prepaid status to Completed. However, the prepaid must first be fully depleted.
Recycled	Prepaid status is Ready and cannot be changed.
Reversal In Progress	Prepaid status is Ready and cannot be changed.
Reversed	Prepaid status is Ready and cannot be changed.

Note. You cannot ready a prepaid without first assigning it to a billing plan.

Prepaid Amounts: Billing and Utilization

When establishing a prepaid amount, you must assign it to a billing plan. Either create a new billing plan for the prepaid amount or assign the prepaid amount to an existing billing plan associated with fixed-amount contract lines. The billing plan determines the timing and parameters of the initial prepaid billing.

Note. You can relate prepaid utilization criteria only to rate-based contract lines. You link rate-based contract lines to a different billing plan than that of the prepaid. The billing plan linked to the prepaid is used for the initial billing of the prepaid amount. The billing plan linked to the rate-based line is used for the perpetual billing activity that occurs with the utilization of the prepaid.

Determine the parameters against which the prepaid balance can be utilized. You may choose to use the prepaid balance against any of these activities:

All billing activity for all (or some) rate-based contract lines contained in the contract.
All billing activity for one rate-based contract line contained in the contract.
All billing activity for a particular project or activity associated with a rate-based contract line contained in the contract.
A portion of the billing activity (based on project string—that is, resource type or resource category) for any of the above.

When Contracts sends rate-based billing activity to Billing, Contracts creates additional utilization rows and sends those to Billing to net out billable amounts. As these rows are sent to Billing, the prepaid committed amount is increased. After billing is finalized by the Billing to PC/CA Interface process (BIPCC000), the prepaid committed amount is removed and the prepaid remaining amount is decremented appropriately. In addition, the utilization rows are sent back to Project Costing for analysis and to adjust the balance sheet accounting. The utilization process continues until the prepaid balance is fully decremented (remaining amount equals zero).

Note. A value-based billing plan allows users to define and bill independent amounts other than the actual rate-based transactions processed for revenue recognition. Value-based billing plans can be assigned only to rate-based contract lines. Prepaids are applied to rate-based contract lines based on the utilization controls. One of the utilization control options is to use the prepaid against all contract lines. However, even if you select this option, prepaids are not applied to any rate-based contract line tied to a value-based billing plan. (Value-based amounts are fixed in nature.)

Prepaid Accounting

Prepaids have two components: the initial prepaid billing and the utilization of the prepaid balance. Both components have accounting requirements associated with them.

When setting up the prepayment, you must define the deferred revenue accounting distribution to which the initial prepayment amount is to be booked. This accounting distribution is passed to Billing; after finalization, Billing creates an accounting entry to debit billed accounts receivable (AR) and credit deferred revenue.

Note. The accounting specified in the prepaid table is not dependent upon your selection of the deferred revenue option on the contract line.

The system generates accounting entries for utilization in two parts:

The first accounting entry occurs in Billing.

The accounting distribution on utilization rows sent to Billing is the same unbilled AR distribution found on the corresponding billing row. Once the bill is finalized, Billing creates two accounting entries: one for the billable amount and another for the utilization. The utilization entry debits unbilled AR and credits billed AR; this entry nets out the billing entry that debits billed AR and credits unbilled AR. In Billing and General Ledger, the nets out if the utilization covers the entire billable amount.
The second accounting entry occurs in Contracts.

After the bill is finalized, the utilization row is inserted into PROJ_RESOURCE. The rate-based revenue Accounting Rules Engine process (PSA_ACCTGGL) picks up the utilization row and the corresponding billing row (this can occur at separate times) and creates two accounting entries. The utilization entry debits deferred revenue (as established in the Prepaid table) and credits unbilled AR; the regular entry debits unbilled AR and credits revenue.

Note. Because all entries are derived from the source transaction row or prepaid table, you cannot set up accounting distributions for regular utilization (UTL) and utilization adjustments (UAJ) rows on the Accounting Rules page.

Prepaid Balance Processing

Processing prepaids involves the following Application Engine processes throughout the system:

Contracts Billing Interface process.
Utilization Engine process, which is called automatically from the Contracts Billing Interface process.
Billing to Projects process.
Prepaid Update process, which is called automatically from the Billing to PC/CA Interface process.
Contracts to GL process (rate-based revenue process).

Initial Prepaid Billing Process (Contracts Billing Interface process)

This process handles the initial prepaid much like a fixed-amount contract line. The timing and percentage to be billed depends on the status and events of the billing plan assigned to the prepaid. The amount itself, as well as the deferred revenue accounting information, comes from the CA_PREPAID_TBL. The billing information is then sent to INTFC_BI, where it awaits the Billing Interface (BIIF0001).

See Running the Contracts Billing Interface Process (CA_BI_INTFC).

Prepaid Utilization Process

After the Contracts Billing Interface process selects and processes project billing activity, but prior to sending the activity to billing, the Prepaid Utilization process is called. This process considers all active prepaid balances and the utilization criteria defined. Then, of the active prepaids, the process selects only the prepaid balances that have had at least one event on the initial billing plan where the invoice has been finalized. The billing activity is then matched up against this data. If a match is found and there is an available balance, a new utilization row is created. If more than one match is found, the prepaid balance with the lowest-use sequence number is selected. As utilization rows are created, the committed amount in the CA_PREPAID_TBL is updated to reflect the prepaid amount committed to be utilized. Once the process completes, the Contracts Billing Interface process inserts the utilization rows, along with the billing rows, into the INTFC_BI table.

Note. The Prepaid Utilization process also considers prepaid tax implications. If the initial prepaid includes ship to and ship from countries that are different from that of the billing activity, utilization rows are not created. For complex tax situations, where the utilization may span many ship to and ship from combinations and you choose to tax upon the initial prepaid, split the prepaid into separate prepaid amounts and define utilization for each amount to specific contract lines.

Billing to Projects Process

After a bill is finalized, you run the Billing to PC/CA Interface process to update Project Costing with actual billing information. This may include billing adjustments, credits, rebills, or utilization. Utilization data is ultimately written back to PROJ_RESOURCE as analysis types UTL and UAJ.

Prepaid Update Process

During the Billing to PC/CA Interface Process, the Prepaid Update Process is called. This process reduces the committed amount and remaining amount in the CA_PREPAID_TBL, based on the utilization being sent back to Project Costing.

Contracts to GL Process (Rate-Based Revenue Process)

In addition to creating accounting entries for PROJ_RESOURCE revenue rows, the rate-based revenue process (Accounting Rules Engine) creates accounting entries for utilization rows (UTL, UAJ).

See Running the Contracts Billing Interface Process (CA_BI_INTFC).

Prepaid Amounts: Tracking

When adding a prepaid amount to a contract, the system tracks three amounts associated with that prepaid balance: purchased amount, remaining amount, and committed amount. The following steps define how these amounts are used:

A prepaid balance of 100,000 USD is established.

Purchased Amount

Remaining Amount

Committed Amount

100,000.00 USD

100,000.00 USD

0
A utilization of 25,000 USD is sent to Billing through the Contracts Billing Interface process.

Purchase Amount

Remaining Amount

Committed Amount

100,000.00 USD

100,000.00 USD

25,000.00 USD
A utilization of 25,000 USD is finalized in Billing.

Purchase Amount

Remaining Amount

Committed Amount

100,000.00 USD

75,000.00 USD

0

Purchased Amount	Remaining Amount	Committed Amount
100,000.00 USD	100,000.00 USD	0

Purchase Amount	Remaining Amount	Committed Amount
100,000.00 USD	100,000.00 USD	25,000.00 USD

Purchase Amount	Remaining Amount	Committed Amount
100,000.00 USD	75,000.00 USD	0

Prepaid Example

This example shows the accounting implications of a 100,000.00 USD prepaid and the utilization against it. Column headings are abbreviated. Full spellings are as follows: billed accounts receivable (Billed AR), deferred revenue (Deferred Rev), and unbilled accounts receivable (UAR).

Steps	Billed AR	Deferred Rev	UAR	Revenue
Initial prepayment is billed. Billing creates the following entries:	100,000.00	(100,000.00)
20,000.00 USD of billable transactions sent to Billing. Billing creates the following entries:	20,000		(20,000.00)
20,000.00 USD of billable transactions are utilized. Billing creates the following entries:	(20,000.00)		20,000.00
The Contract-to-GL process sends billable transactions to General Ledger. Contracts creates the following entries:			20,000.00	(20,000.00)
The Contract-to-GL process sends utilization rows to General Ledger. Contracts creates the following entries:		20,000.00	(20,000.00)
81,000.00 USD of billable transactions are sent to Billing. Billing creates the following entries:	81,000.00		(81,000.00)
80,000.00 USD of billable transactions are utilized. (1,000.00 USD cannot be utilized because prepaid balance is fully decremented.) Billing creates the following entries:	(80,000.00)		80,000.00
The Contract-to-GL process sends billable transactions to General Ledger. Contracts creates the following entries:			81,000.00	(81,000.00)
The Contract-to-GL process sends utilization rows to General Ledger. Contracts creates the following entries:		80,000.00	(80,000.00)
Totals	101,000.00 awaiting cash collection	0	0	(101,000.00)

Establishing Prepaid Amounts

You can associate each prepaid amount that you add to a contract with one, all, or several active rate-based contract lines on a contract. This section describes how to:

Define prepaid amounts.
Associate prepaid with contract lines.
Set up initial billing.
Set up deferred revenue distribution.

Page Used to Establish Prepaid Amounts

Page Name	Object Name	Navigation	Usage
Prepaids	CA_PPD_CONTRACT	Customer Contracts, Determine Price and Terms, Prepaid Balances, Prepaids Click the Prepaids link in the Go To drop down list box on any page of the Contract component.	Establish prepaid balance amounts.

Defining Prepaid Amounts

Access the Prepaids page. Select the General tab.

Status

Select a status, which controls the actions that you can perform and the system processing that can occur against a prepaid amount. Values are: Pending, Ready, Completed, and Cancelled.

Hold

Select to place a prepaid amount on hold. When a prepaid amount is on hold, no utilization processing occurs against that amount.

Purchased Amount

Enter the full amount of the prepaid that was purchased by the customer.

Inclusive

Select if the prepaid amount is included in the negotiated amount of a fixed-amount contract line. For example, you might have a prepaid amount of 50,000.00 USD representing a mandatory consulting fee that was included in the purchase of a 1,000,000.00 USD software license. Clear this check box if the prepaid amount is a noninclusive amount.

Expiration Date

Enter an expiration date. This field is for informational purposes only; no processing is keyed off of the value that you enter.

Remaining Amount

Displays the purchased amount less any utilized amounts that have been finalized in Billing.

Committed Amount

Displays the amount that has been utilized, but the bills have not been finalized in Billing. When a bill is finalized in Billing, the amount for that bill is backed out of the Committed Amount field and is then reflected in the Remaining Amount field.

The balance available for subsequent utilization is the remaining amount less the committed amount.

Depleted Date

Displays the system date on which the remaining amount of the prepaid became zero.

Associating Prepaids with Contract Lines

Access the Prepaids page. Select the Utilization tab.

(move item use sequence up)

Click this button to increase a prepaid’s Use Sequence number. The prepaid must be in a Ready status for it to be moved.

(move item use sequence down)

Click this button to decrease a prepaid’s Use Sequence number. The prepaid must be in a Ready status for it to be moved.

(prepaid sequence number)

Contracts can contain multiple prepaid amounts. When adding a prepaid amount to a contract, the system assigns a prepaid sequence number to that prepaid amount. The contract number and contract prepaid sequence comprise the unique key of the prepaid sequence table.

Use Sequence

Displays the use sequence number. If multiple prepaid amounts are associated with the same billable activity, the system uses this value to determine which prepaid amount is depleted first. The system processes the prepaids in order of lowest to highest.

The use sequence number may differ from the prepaid sequence number.

Use for All Lines in Contract

Select if this prepaid amount should be applied against all rate-based lines on this contract.

Note. If you have value-based billing or recurring plans assigned to this contract, the prepaid is not applied to the contract lines associated with any value-based billing plans. The system applies prepaids to rate-based contract lines assigned to as-incurred billing only.

Contract Line Num (contract line number)

Select a contract line number to apply this prepaid amount against a specific rate-based contract line number.

Note. If you want to assign more than one contract line to the prepaid, leave this field blank. You can then assign multiple contract lines to a prepaid on the Utilization Criteria page.

Utilization Descr for Billing (utilization description for billing)

The system generates the utilization description for billing by concatenating the prepaid use sequence number with the contract number. You can accept this description or enter a custom description. This is the description used on the utilization line that is included in the bill.

Utilization Criteria

Click to access the Utilization Criteria component, where you can define the specific projects transactions against which this prepaid amount can be applied and where you can view the utilization history for this prepaid amount.

Setting Up Initial Billing

Access the Prepaids page. Select the Initial Billing tab.

Billing Plan

Select the plan that is to be used to bill for the prepaid amount. Prepaid amounts should be associated with one of these billing plans of method: Milestone, Percent Complete, or Immediate.

Create Bill Plan

Click to access the billing plan component, where you can create a new billing plan with which to associate this prepaid amount. Immediate appears by default as the billing method for the new billing plan.

Description

Click the link in this column to access the billing plan component, where you can manage the billing plan.

Billing Plan Status

Displays the status of the associated billing plan.

Purchase Order Reference

If this prepaid amount is associated with a purchase order, enter the purchase order reference information. This information is included on the bill when utilization occurs.

Prepaid Tax Timing

Select when to tax the prepaid. Values are:

Tax on Initial Bill: Tax prepaid at time of initial bill. The initial prepaid bill is taxed, and when the row is utilized, the tax is backed out of the UTL row.

Tax on Utilization: Tax prepaid when utilization occurs. No tax information is sent to Billing on the initial bill. When the row is utilized, the BIL row is taxed, but there is no backing out of taxes on the UTL row.

To view or edit tax information, access the billing plan.

Note. If you select Tax on Initial Bill, and the tax parameters that you populate on the initial prepaid billing plan include the value-added tax (VAT) applicable Billing business unit, ship to country, and ship from country, then utilization is restricted to services that occurred in the same ship to country, ship from country, and VAT registered entity as the initial prepaid.

Setting Up Deferred Revenue Distribution

Access the Prepaids page. Select the Deferred Revenue Distribution tab.

Note. The system books the prepaid to deferred revenue as specified here, whether or not you selected the deferred revenue accounting check box on the contract line.

Distribution Code	Represents a combination of General Ledger ChartField values.
Alternate Account	Classifies the nature of a transaction for regulatory authorities. Used for statutory accounts.
Department	Used to indicate who is responsible for or affected by the transaction.
Operating Unit	Used to indicate a location, such as a distribution warehouse or a sales center. Or it is used for responsibility reporting, such as a profit center.
Product	Captures additional information useful for profitability and cash flow analysis, for example.
Project	Captures additional information useful for project accounting. When the deferred revenue accounting entry is made, the Project field is populated from the project associated with the billing activity (from PROJ_RESOURCE); this project is not used.
Affiliate	Used as one approach for interunit journal processing and consolidated reporting. Provides a way to map transactions between business units while using a single intercompany account.
Statistics Code	Identifies non monetary amounts. Statistic codes are associated with a specific unit of measurement.

Defining and Viewing Utilization of Prepaid Amounts

The actual utilization of the prepaid balance is based on the billing rows that are collected in Project Costing. All projects or activities associated with a contract line are subject to utilization unless a specific project or activity is defined on the Utilization Criteria page. In addition, users may define a lower level of utilization by specifying a certain project string. For example, the prepaid may apply only to time charged on a project, not expenses.

This section discusses how to:

Define utilization criteria.
View utilization history.

Pages Used to Define and View Utilization of Prepaid Amounts

Page Name	Object Name	Navigation	Usage
Utilization Criteria	CA_PPD_UTL_PNL	Customer Contracts, Determine Price and Terms, Prepaid Utilization Rules, Utilization Criteria Click the Utilization Criteria link on the Utilization tab of the Prepaids page.	Define utilization criteria by restricting the billable activities in PROJ_RESOURCE that are candidates for utilization of a prepaid amount.
Utilization History	CA_PPD_UTL_DTL	Customer Contracts, Determine Price and Terms, Prepaid Utilization Rules, Utilization History Click the Utilization Criteria link on the Utilization tab of the Prepaids page.	View the utilization history for each prepaid amount use sequence, including the utilization amounts that have been finalized in Billing and sent to Project Costing.

Defining Utilization Criteria

Access the Utilization Criteria page.

The utilization description for billing, use sequence number, purchased amount, remaining amount, committed amount, and expiration date that you defined for this prepaid amount on the Prepaids page appear.

The system displays whether you designated this prepaid amount Use for all Contract Lines or if you specified Use only for Contract Line number x, where number x equals the contract line number that you specified.

Balance Utilization Controls - Use % for Wildcard Grid

Use the fields in this area to select a specific set of project items to which the prepaid amount can be applied. When you first access this page, each field, with the exception of Line Num (line number), contains a % symbol. The % symbol, or wildcard, indicates that the prepaid amount will be applied to all project items associated with the contract line numbers that you specify. Alternatively, you can select specific values for these fields.

Line Num	If you specified use for a specific line number, that line number appears. Otherwise, you can select as many active rate-based lines on the contract as required. Note. If you chose to apply utilization against all contract lines in the contract, this field does not appear on the page.
PC Bus Unit (Project Costing business unit)	Select a Project Costing business unit for this contract line. The list of Project Costing business units consists of those that share the same general ledger business unit as the contract’s Contract business unit. Each contract line can be associated with only one Projects business unit. The Projects business unit that you select filters the list of projects that you can associate with this contract. Note. You must select the same Projects business unit that you defined for this contract line number on the Related Projects page.
Project	Select to limit the projects to which the system can apply the prepaid amount. The list contains all projects for the selected Projects business unit that you have linked to this contract line.
Activity	To associate your contract line with a Project Costing activity identifier, select an activity ID. The list contains all activities defined for the project that you selected. Activities are the individual tasks or events that comprise a project. A single activity can be associated with only one contract line.
Analysis Type	Analysis types are assigned to individual resources to identify the different types of transactions in your system, such as estimated costs, budgeted costs, actual costs, and billed costs.
Source Type	Assign source types to individual resources to enable you to track, analyze, and report all costs—both actual and planned—for a particular resource.
Category and SubCategory	Use resource categories and resource subcategories to track resources at a finer level of detail.

Viewing Utilization History

Access the Utilization History page.

When billing utilization is finalized in Billing, the system inserts the rows into Project Costing. The Utilization History scroll area is a view of PROJ_RESOURCE. The amount that was utilized appears. The sum of all rows in the Amount column plus the remaining amount equals the purchased amount.

Monitoring Administrative Activity for Prepaid Amounts

This section discusses how to monitor prepaid activity.

After you enter a prepaid balance onto a contract, these actions are tracked in the CA_PREPAID_AUD table:

Changing the status to Ready.
Placing the prepaid balance on hold.
Changing the use sequence number.

Page Used to Monitor Administrative Activity for Prepaid Amounts

Page Name	Object Name	Navigation	Usage
Prepaid Balances - Audit History	CA_PPD_HISTORY	Customer Contracts, Determine Price and Terms, Prepaid Balances, Audit History	Monitor prepaid activity, such as changes in prepaid status that have occurred for each contract prepaid amount.

Monitoring Prepaid Activity

Access the Prepaid Balances - Audit History page.

Purchased Amount

Displays the full amount of the prepaid that the customer purchased.

Date/Time Stamp

Displays the system date on which the change was made.

User ID

Displays the name of the user who made the change.

Action Type

Displays a description of the change that was made.

Status

Displays the prepaid amount status after the change has been made.

Remaining Amount

Displays the prepaid amount that has not yet been utilized.

Status	Select a status, which controls the actions that you can perform and the system processing that can occur against a prepaid amount. Values are: Pending, Ready, Completed, and Cancelled.
Hold	Select to place a prepaid amount on hold. When a prepaid amount is on hold, no utilization processing occurs against that amount.
Purchased Amount	Enter the full amount of the prepaid that was purchased by the customer.
Inclusive	Select if the prepaid amount is included in the negotiated amount of a fixed-amount contract line. For example, you might have a prepaid amount of 50,000.00 USD representing a mandatory consulting fee that was included in the purchase of a 1,000,000.00 USD software license. Clear this check box if the prepaid amount is a noninclusive amount.
Expiration Date	Enter an expiration date. This field is for informational purposes only; no processing is keyed off of the value that you enter.
Remaining Amount	Displays the purchased amount less any utilized amounts that have been finalized in Billing.
Committed Amount	Displays the amount that has been utilized, but the bills have not been finalized in Billing. When a bill is finalized in Billing, the amount for that bill is backed out of the Committed Amount field and is then reflected in the Remaining Amount field. The balance available for subsequent utilization is the remaining amount less the committed amount.
Depleted Date	Displays the system date on which the remaining amount of the prepaid became zero.

(move item use sequence up)	Click this button to increase a prepaid’s Use Sequence number. The prepaid must be in a Ready status for it to be moved.
(move item use sequence down)	Click this button to decrease a prepaid’s Use Sequence number. The prepaid must be in a Ready status for it to be moved.
(prepaid sequence number)	Contracts can contain multiple prepaid amounts. When adding a prepaid amount to a contract, the system assigns a prepaid sequence number to that prepaid amount. The contract number and contract prepaid sequence comprise the unique key of the prepaid sequence table.
Use Sequence	Displays the use sequence number. If multiple prepaid amounts are associated with the same billable activity, the system uses this value to determine which prepaid amount is depleted first. The system processes the prepaids in order of lowest to highest. The use sequence number may differ from the prepaid sequence number.
Use for All Lines in Contract	Select if this prepaid amount should be applied against all rate-based lines on this contract. Note. If you have value-based billing or recurring plans assigned to this contract, the prepaid is not applied to the contract lines associated with any value-based billing plans. The system applies prepaids to rate-based contract lines assigned to as-incurred billing only.
Contract Line Num (contract line number)	Select a contract line number to apply this prepaid amount against a specific rate-based contract line number. Note. If you want to assign more than one contract line to the prepaid, leave this field blank. You can then assign multiple contract lines to a prepaid on the Utilization Criteria page.
Utilization Descr for Billing (utilization description for billing)	The system generates the utilization description for billing by concatenating the prepaid use sequence number with the contract number. You can accept this description or enter a custom description. This is the description used on the utilization line that is included in the bill.
Utilization Criteria	Click to access the Utilization Criteria component, where you can define the specific projects transactions against which this prepaid amount can be applied and where you can view the utilization history for this prepaid amount.

Billing Plan	Select the plan that is to be used to bill for the prepaid amount. Prepaid amounts should be associated with one of these billing plans of method: Milestone, Percent Complete, or Immediate.
Create Bill Plan	Click to access the billing plan component, where you can create a new billing plan with which to associate this prepaid amount. Immediate appears by default as the billing method for the new billing plan.
Description	Click the link in this column to access the billing plan component, where you can manage the billing plan.
Billing Plan Status	Displays the status of the associated billing plan.
Purchase Order Reference	If this prepaid amount is associated with a purchase order, enter the purchase order reference information. This information is included on the bill when utilization occurs.
Prepaid Tax Timing	Select when to tax the prepaid. Values are: Tax on Initial Bill: Tax prepaid at time of initial bill. The initial prepaid bill is taxed, and when the row is utilized, the tax is backed out of the UTL row. Tax on Utilization: Tax prepaid when utilization occurs. No tax information is sent to Billing on the initial bill. When the row is utilized, the BIL row is taxed, but there is no backing out of taxes on the UTL row. To view or edit tax information, access the billing plan. Note. If you select Tax on Initial Bill, and the tax parameters that you populate on the initial prepaid billing plan include the value-added tax (VAT) applicable Billing business unit, ship to country, and ship from country, then utilization is restricted to services that occurred in the same ship to country, ship from country, and VAT registered entity as the initial prepaid.

Purchased Amount	Displays the full amount of the prepaid that the customer purchased.
Date/Time Stamp	Displays the system date on which the change was made.
User ID	Displays the name of the user who made the change.
Action Type	Displays a description of the change that was made.
Status	Displays the prepaid amount status after the change has been made.
Remaining Amount	Displays the prepaid amount that has not yet been utilized.